Are you thinking of selling your business? Now may be the perfect time for you to do so. However, you also need to be prepared. There are a number of very important things that you need to keep in mind when doing so. Here are the 3 most important things to consider when you decide to sell your business.
1. Make Sure That the Timing is Right
The first thing you will need to do when selling your business is to make sure that the timing is exactly right. Not only does the timing have to be right economically, but it has to be right for you as a business owner to give up the business you’ve built.
There are many other indicators that you can make use of in order to make sure that now is the best time to sell your business. For one thing, if your rate of profits is at an all-time high, your business will surely be worth more than ever before. This means that the number of offers you are getting is bound to be increasing.
As the offers to buy your business flood in, you will naturally be in an excellent position to name your own price. If you feel that the value of your business is at an all-time high level and will not increase appreciably in the near future, now is the time to sell. Getting out while the value is sky high is always the best policy.
2. Make Sure Your Legal Obligations Are Met
Another important factor to consider when selling your business is that all of your various legal obligations are met. This means that you want to be sure that you don’t owe any money to creditors, clients, business partners, etc. You want to be able to cut ties cleanly without leaving any loose ends behind.
If your business is in a field like pharmaceuticals, there may be many legal considerations you don’t know about when it comes to selling. This is when it is important that you find good business and legal counsel with people who are familiar with the pharmaceutical field and have experience selling this type of business. A quick google search for “help selling my pharmacy” can get you on your way to finding the support you need to have a smooth and quick sell.
If you were involved in any lawsuits with clients, former business partners, or others, you want to be sure that these suits have all been settled and taken care of. You don’t want to be in a position where you are trying to put a new business together while still having to answer legal claims filed against you from the former firm.
You also want to make sure that you are in a position where you can easily sell your business with no legal hassles. You want to own the business free and clear with no liens against it and no baggage from others who may try to claim they own a part of it. Make sure to resolve any ownership disputes before you put it up for sale.
Finally, all of your tax and other financial records should be fully up to date. Be sure to remember that all of this is info that you may have to turn over to the one that you are selling your business to. You want to give them as clean, clear, and fresh of a start as possible so that you can get on with your own next move.
3. Always Have a Clear Exit Strategy
It’s also important to make sure that you have a clear strategy for your next move. Unless you are going into retirement, you will probably want to start a new business somewhere else. Before you sell your current firm, you want to have a clear idea of where you are going next. This way, you won’t flounder around aimlessly.
You should already be in the process of setting up your next business. This will allow you to segue seamlessly from your old one to the new. You can turn over the keys to the new owner and move straight ahead with your plans for your new business.
The Time to Sell Your Business is Now
If you believe that the terms of your business sale meet all of the above criteria, now is by far the best time to sell. You can guarantee yourself the highest rate of return on your initial investment. The sale will also set you up in an admirable position to repeat your success in a new setting in the very near future.
